News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Bearish
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
GBP/USD
Bullish
USD/JPY
Bullish
More View more
Real Time News
  • OPEC+ could boost output even if U.S. supply shrinks - BBG #OOTT #CrudeOil $CL_F
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/D1THdeSG4K
  • The FDA has approved the Pfizer-BioNTech vaccine for children aged 12-15 - BBG
  • Forex Update: As of 20:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.92% 🇨🇦CAD: 0.14% 🇨🇭CHF: -0.08% 🇯🇵JPY: -0.23% 🇳🇿NZD: -0.25% 🇪🇺EUR: -0.29% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/tOILFlOHUE
  • US Labor Sec. Marty Walsh: Unemployment payments are not a deterrent of jobs $USD
  • Commodities Update: As of 20:00, these are your best and worst performers based on the London trading schedule: Gold: 0.32% Oil - US Crude: -0.09% Silver: -0.44% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/tK1AM3xwih
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 88.87%, while traders in Wall Street are at opposite extremes with 81.61%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/nUJ0iqkh2M
  • Bitcoin selling off over the last hour, now down more than 5% today $BTCUSD #BTC https://t.co/bZlTmyTo67
  • Well, that was an ugly close. $SPX 15min chart: https://t.co/HRlti80bvf
  • Indices Update: As of 20:00, these are your best and worst performers based on the London trading schedule: US 500: 0.04% Wall Street: 0.03% France 40: -0.58% Germany 30: -0.61% FTSE 100: -0.72% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/e6fmDyQxPH
GBP Technical Forecast: GBP/USD Charts Looking Increasingly Bullish

GBP Technical Forecast: GBP/USD Charts Looking Increasingly Bullish

Paul Robinson, Strategist

GBP/USD Technical Outlook

  • Gradual chopping decline since Feb smacks of corrective behavior
  • Bull-flag coming into view that could soon trigger
  • A breakdown to 13500 would still leave longer-term outlook intact
Advertisement

GBP Technical Forecast: GBP/USD Charts Looking Increasingly Bullish

The gradual choppy decline that has been developing in GBP/USD is taking on the shape of a bull-flag that could soon trigger towards another leg higher within the context of an uptrend off the March 2020 panic low.

If this is to be the case, then a rally could commence at any time. There is good support at the feet of cable via a slope from May, which is viewed as a line-in-the-sand between here and a massive support test by way of the 2009 low.

Before getting to the 13500 test scenario, if the bull-flag breaks soon, a rise above the most recent pivot high at 13919 will help confirm that indeed a new bull leg is trying to gain momentum. This would snap the lower-high/lower-low sequence that is inherent to bull-flag patterns.

From there the first targeted level would be the Feb high at 14241, but if the bull trend is to continue then higher prices from there are anticipated.

Backing up to the scenario where the slope doesn’t hold as support, we could see a move to the 13500 level. This would be a major development as this is the 2009 low, and has been validated as a level of meaning on four occasions since 2016. Most recently in 2019 and 2020 it acted as a meaningful level of resistance.

A drop to that point could offer up a strong risk/reward trade from the long-side as old resistance will be viewed as a potential source of support. But for now, as long as the slope holds then the bull-flag on the daily is in play. The coming days and weeks look like they will be pivotal for the broader outlook in cable.

GBP/USD Daily Chart (bull-flag, slope support)

GBP/USD daily chart

GBP/USD Weekly Chart (13500 big level)

gbp/usd weekly chart

GBP/USD Charts by TradingView

Resources for Forex Traders

Whether you are a new or experienced trader, we have several resources available to help you; indicator for tracking trader sentiment, quarterly trading forecasts, analytical and educational webinars held daily, trading guides to help you improve trading performance, and one specifically for those who are new to forex.

---Written by Paul Robinson, Market Analyst

You can follow Paul on Twitter at @PaulRobinsonFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES